<h3 id="4e5li48qaxb" data-toc-id="4e5li48qaxb">What is <strong><span>Price to Book Ratio?</span></strong></h3><p>The Price to Book Ratio is calculated by dividing the current market share price by the book value per share of the company.</p><p>Formula: <br><em>Price to Book Ratio = Price per share / Book Value per Share</em></p><h3 id="yef768foak5" data-toc-id="yef768foak5"><strong>What does Price to Book Ratio mean?</strong> </h3><p>The Price to Book Ratio shows how the market values the company compared to its book value. Book value represents the value of the company’s assets if it were liquidated today. A lower Price to Book Ratio may indicate that a company is undervalued, as it is trading for less</p>

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This collection explains the key rules of Shariah-compliant finance, like riba, gharar, and maysir. Learn how scholars decide what's halal, why opinions differ, and what that means for things like stocks, insurance, sukuk, and crypto.

Shariah Compliance in Finance

Lesson 1. What Are Gharar, Maysir, and Riba Really?

Lesson 2. How Do Scholars Actually Make These Decisions?

Lesson 3. Why Do Scholars Use 30% as the Debt Threshold Ratio?

Lesson 4. Why Do Scholars Allow 5% Non-Halal Income?

Lesson 5. Who Are These Scholars Making the Rules?

Lesson 6. Why Do Different Apps Say Different Stocks Are Halal?

Lesson 7. Are Banks and Financial Companies Always Haram?

Lesson 8. Are Real Estate Investment Trusts (REITs) Halal?

Lesson 9. What About Sukuk (Islamic Bonds)?

Lesson 10. What About Options, Derivatives, and Complex Instruments?

Lesson 11. Insurance vs. Takaful: What's the Difference?

Lesson 12. Islamic Banking vs. Conventional Banking

Lesson 13. Is Bitcoin and Cryptocurrency Investing Halal?

Lesson 14. What Happens When Scholars Disagree?

This collection includes tutorial articles on how to use features in the Musaffa web platform.

How-Tos in the Web

How to Use the Musaffa Web Platform

How to Use the Zakat Calculator on Musaffa

How to Request Stock Coverage on Musaffa

How to Upgrade to a Paid Plan on the Musaffa Web

How to Check the Shariah Compliance Report of a Stock on Musaffa

How to use the Manual Portfolio Adder feature on the Musaffa Web Platform

The is collection includes tutorial articles on how to use different features of the Musaffa app.

How-Tos in the App

How to use Musaffa’s Zakat Calculator in the app

How to use Musaffa’s Halal Stock Screener in the app

How to use the Musaffa app

How to use the Musaffa’s purification calculator in the app

How to create a watchlist

A guide to Musaffa subscription plans: Which plan is right for you?

How to Upgrade to a Paid Plan on the Musaffa App

How to use Musaffa’s Halal ETF Screener in the app

How to use the Manual Portfolio Adder feature on the Musaffa App

These explanations here to help users to understand different  financials available on the Musaffa platform. 

Financials

Income Statement

Total Revenue

Cost of Goods Sold

Gross Profit

Total Operating Expenses

Research and Development (R&D) Expense

Selling, General & Administrative (SG&A) Expense

Earnings Before Interest and Taxes (EBIT)

Total Other Income (Expense), Net

Income Before Taxes

Provision for Income Taxes

Net Income

Average Shares Outstanding (Diluted)

Earnings Per Share (Diluted)

Balance Sheet

Assets

Liabilities

Equity

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Net Cash from Operating Activities

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Depreciation & Amortization

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Change in Working Capital

Net Cash from Investing Activities

Capital Expenditure

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Net Cash from Financing Activities

Net Issuance (Reduction) of Debt

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Payments for Dividends and Dividend Equivalents

Payments for Taxes

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Quick Ratio

Current Ratio

Free Cash Flow Margin

Gross Margin

Return on Assets

Return on Invested Capital

Long-Term Debt to Equity

Total Debt to Total Assets

Long-Term Debt to Total Assets 

Total Debt to Total Capital

Operating Margin

Price to Earnings

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Revenue per Share (TTM)

EBIT per Share (TTM)

Earnings per Share (EPS) (TTM)

Dividend per Share (TTM)

EPS Forward

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Average Volume

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Market Cap

Dividend Yield

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Musaffa Halal Rating

Market Indices

Stock Market Sectors

Super Investors

These articles are meant to guide a user on how to use the different features of Musaffa

How-Tos 

How to Purify a Stock on Musaffa

How to Check if Your Country is Covered on Musaffa

Whether you prefer using our web app, Android app, or iOS app, follow these steps to create your account:

How to Sign Up for Musaffa

How to Upgrade to a Paid Plan in the Musaffa App

How to Upgrade to a Paid Plan on the Musaffa Web App

How to use the Manual Portfolio Adder feature

How to Create a Watchlist in Musaffa

How to Add Stocks to a Watchlist in Musaffa

How to Delete Stocks from a Watchlist in Musaffa

How to Create a Public Watchlist on Musaffa

How to Cancel Auto-Renewal of Your Musaffa Plan

How to Use the Web Platform

Purification (A Must-Know Step)

Halal Stock Screening & Ratings

How to Use the Musaffa App

How to Invest in Musaffa

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